June 17, 2024

The Insider News

Direct from the source

Gov’t assures enough, cheaper sugar until March

President Ferdinand R. Marcos Jr. said Tuesday the Department of Agriculture (DA) will establish a two-month sugar buffer stock to lower prices and avoid shortages in the future.

“Again [for] sugar, to cut down speculation, we are guaranteeing a buffer stock of two months. So hindi magkaka-shortage, hindi dapat tataas ang presyo,” President Marcos said.

“We are beginning to rationalize this buying schedule, the importation schedule, so that we will match the crop here of the local producers of sugar. Para hindi naman tayo nagpapasok habang mababa ang presyo ng asukal, so para mag-normalize naman ‘yung presyo,” Marcos said.

During a sectoral meeting in Malacañang, agriculture officials reported that the prevailing retail price of sugar from October 2022 to January 2023 was significantly higher compared to the price from October 2021 to January 2022.

They also reported that as of January 8, the raw sugar production is at 877,028 metric tons (MT), 22.41 percent higher compared to last crop year’s (CY) 716,485 MT.

The raw sugar stock balance is at 362,263 MT, 0.92 percent lower than the 365,633 MT of the previous crop year.

During the same period, refined sugar production reached 316,829.15 MT, 34 percent higher than last crop year’s 235,838.45 MT, while domestic use of refined sugar for the same period is at 211,832.90 MT, 17.78 percent lower compared to last CY’s 257,646.75 MT.

The refined sugar stock balance, meanwhile, is 132,384.55 MT, 8.68 percent higher compared to last CY’s 121,813.25 MT.

The Sugar Regulatory Administration (SRA) projects a negative sugar-ending inventory by July 2023.

The Carbonated Soft Drinks (CSD) industry and major sugar industry stakeholders requested the implementation of a supplemental sugar importation program based on the forecast that the current sugar inventory would only last until the second quarter of this year.

The CSD industry claims that without premium refined domestic sugar to manufacture its products, manufacturers would be forced to impose prolonged shutdowns, which would affect the livelihood of employees.

The DA and the SRA have recommended importing up to 450,000 MT of sugar, following the instruction of President Marcos to maintain a two-month sugar buffer stock and to bring down retail prices.

In addition, to help lower sugar prices, the DA gave its nod for the sale of 80,000 bags of seized sugar at KADIWA stores at P70 per kilo upon approval from concerned agencies, such as the finance department and SRA.

Also, a “sugar council,” composed of sugar planters’ federations, was formed to discuss policy recommendations to the government for the sugar industry.